Throughout history, businesses in most of North America have faced alternating periods of water shortages and excess water. This erratic water behavior is expected to continue, with prolonged periods of too little and too much water, potentially causing extended business disruptions.
The Perfect Example
Before winter 2022/2023, California expected continuing drought and water shortages. But then, the dam broke, quite literally. The state received a "colossal amount of rain and snow," according to USA Today. "The state was drenched with an estimated 78 trillion gallons of water."
While everyone expressed relief, the question now is how long will this last? That, we do not know.
Such extremes have always impacted businesses, especially extreme water shortages. Here are some examples:
In 2021, Taiwan Semiconductor Manufacturing Corporation started trucking in water to continue production due to drought conditions. If the company had to stop production due to a lack of water, Apple and many other companies would have to stop production. It could cause a worldwide financial collapse.
A mining company was forced to shut down operations in Chile due to ongoing water shortages. The closure cost the company $8.5 billion. This example underscores the immediate and substantial financial risks businesses face due to water scarcity.
The Colorado River supplies businesses, farmers, and more than forty million people with water. Due to continued drought, water from the river is now strictly allocated, with most everyone sharing less water; the big concern now is what to do if the river runs dry.
Too Much Is Not Good Either
A study published in the reputable journal Communications Earth & Environment shows that floods in the U.S. are the most devasting of water-related natural hazards, costing the U.S. $160 billion from 1996 to 2020. These flash floods are already having a dramatic impact, especially in Florida, where:
• More lives are being lost due to annual flooding than ever before.
• Public infrastructure is being damaged, often severely.
• Property insurance is skyrocketing, with several insurance companies pulling out of the state entirely.
• Coastal high-end homes are now viewed as the first properties to be uninhabitable in coming years.
What Will the Future Hold?
The future is uncertain, but some trends and predictions can help us prepare for it. For example:
· Water security will become a key factor for businesses that want to expand or relocate to other states or countries. They will evaluate the water risks and opportunities in those areas before making decisions.
· Water efficiency will be a top priority in commercial buildings, especially in restrooms, where most water is used. More facilities will adopt low-flow and no-flow fixtures, such as waterless urinals, to save water and money.
· Water stewardship will be widespread among companies that care about their social and environmental impact. They will collaborate with their communities to reduce water demand, conserve water resources, and enhance water quality.
· Water transparency will be a requirement. More companies will disclose their water challenges and solutions and show how they plan for the future.
Finally, we must all view water as a limited resource in water-rich and water-poor times. This means the critical goal for all businesses today and in the future is to use water more sparingly and efficiently and collaborate with their communities to minimize water risks for all.
Klaus Reichardt is CEO and founder of Waterless Co, Inc., a pioneer in advancing water efficiency. Reichardt is a frequent author and presenter who discusses water conservation issues. He can be reached at klaus@waterless.com
